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Patrick Drahi, a director and significant shareholder of Altice USA, Inc. (NYSE:ATUS), has sold shares worth approximately $19.7 million, according to a recent filing. The transactions, which occurred on November 14, involved the sale of 805,227 shares of Class A common stock at prices ranging from $23.3164 to $25.6836 per share. Following these transactions, Drahi, through his holding company Next (LON:NXT) Alt S.a.r.l., continues to hold a substantial stake in the company, with over 27.5 million shares remaining in his possession.
In other recent news, Altice-USA's Q3 2024 earnings call showcased operational improvements and strategic growth in its fiber and mobile segments. The company reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million, with an addition of 47,000 new fiber customers and 36,000 mobile lines. Despite a decline in total and residential revenue, Altice-USA saw a significant increase in mobile services revenue and maintains a strong liquidity position with no debt maturities until 2027.
TD Cowen has adjusted its stance on Altice-USA, reducing the price target to $3.50 from the previous $6.00, while maintaining a buy rating. The firm acknowledges Altice-USA's progress in key areas, but notes the reduced capex forecast may lead to a slower FTTH infrastructure rollout. The analyst also pointed out that the lowered EBITDA suggests a potential operational turnaround may start from a weaker financial position than previously anticipated.
Altice-USA has set ambitious near-term targets, including significant increases in mobile and fiber subscriber additions, a reduction in 2025 capex, and an aim to achieve EBITDA margins around 40%. The company is committed to growing its fiber and mobile subscriber bases, aiming for over 1 million customers in each segment by 2026 and 2027, respectively. Despite challenges, Altice-USA continues to focus on operational excellence and market strategy evolution.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Altice USA's financial position and market performance, providing context to Patrick Drahi's recent stock sale. Despite the significant insider transaction, Altice USA's stock has shown strong momentum, with InvestingPro data revealing a remarkable 61.11% price return over the past three months. This surge aligns with an InvestingPro Tip indicating a "Strong return over the last three months."
However, investors should note that Altice USA's financial health presents a mixed picture. The company's revenue for the last twelve months as of Q3 2023 stood at $9.02 billion, with a concerning revenue decline of 3.05% over the same period. This decline is reflected in the company's profitability, as another InvestingPro Tip points out that Altice USA has "Not been profitable over the last twelve months."
On a more positive note, analysts are optimistic about the company's future prospects. An InvestingPro Tip suggests that "Net income is expected to grow this year," and analysts predict the company will return to profitability. This forward-looking perspective might explain why the stock has maintained investor interest despite recent challenges.
For readers seeking a more comprehensive analysis, InvestingPro offers 6 additional tips and a wealth of financial metrics for Altice USA. This deeper dive could provide valuable insights into the company's valuation, growth prospects, and potential risks.
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